How statistics are used in business areas (accounting, finance, management and marketing?

June 18th, 2010 by Leave a reply »

For basic knowledge, such as an intro course to statistics.

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3 comments

  1. Doctor Deth says:

    not much – I’ve never really used anything in the real world that i learned in 2 stat courses in college – I’m an accountant

  2. Skeptic says:

    I’ve been a developer for decades and I use statistics frequently in my work. Statistics clearly has real world applications in all of the subjects you list.

    Accounting – Random sampling is frequently used by accounting firms when accounts (like travel expenses) are relatively small and inconsequential. You can use a random sample to estimate the quality of the whole population of accounts.

    Finance – Trend analysis and correlation are common when making economic forecasts.

    Management – Sampling of opinion polls and data pertaining to personnel. These are often summarized with estimates of errors.

    Marketing – Customer surveys, correlations between advertising outlays and increased revenues. Estimates of market sizes uses sampling. Product quality is also a rich field for statistical analysis.

    Any time you want a quick answer, you can get a good estimate by using statistical sampling. For example, a stratified random sample of accounts can be used instead of an exact calculation when you have paper sales orders (or pending sales orders) that are not entered into the computer. Make sure to count all the big ones, and you can estimate the small ones.

  3. my sign says:

    They are used in the areas you list as well as in psychology, medicine, and in all areas of research and science.

    In my experience, the first two introductory statistics courses which cover descriptives, hypothesis testing, and linear regression are essential. There are more advanced courses, but they are really just variations of these. So if you are going to lean the basics, it would be good to learn them well.